Bank of America Global Research discusses GBP outlook and adopts a bearish bias over the medium-term.

"The pound has taken on an unusual role since the start of the year and one that does not sit well with us. Against the backdrop of events in Ukraine, GBP has taken on safe-haven-type attributes as EUR/GBP fell to multi-year lows through early March," BofA notes. 

"To assume GBP could remain relatively immune from any geopolitical fallout stands at odds with our priors on how sterling has reacted through previous crises...We believe this inevitably takes its toll on GBP over the medium term. There are signs from our FX Factor Signal that the once-supportive backdrop for GBP is giving way to bearish forces,"BofA adds.